Heterogeneity and aggregate consumption: an empirical assessment

dc.contributor.author Debortoli, Davide
dc.contributor.author Galí, Jordi, 1961-
dc.date.accessioned 2025-03-31T09:01:08Z
dc.date.available 2025-03-31T09:01:08Z
dc.date.issued 2025-03
dc.description.abstract We provide an empirical assessment of a central implication of models with idiosyncratic income risk and incomplete markets: the existence of a role for the distribution of wealth in shaping the dynamics of aggregate consumption. Estimates of consumption Euler equation models extended to include wealth distribution statistics show the latter to have a negligible quantitative impact on aggregate consumption. This contrasts with the important role played by current disposable income, even when we use data for households with (relatively) high liquid wealth. The latter finding suggests the presence of a significant behavioral component behind the high sensitivity of consumption to current income.
dc.identifier.uri http://hdl.handle.net/10230/70048
dc.language eng
dc.language.iso eng
dc.rights.accessRights info:eu-repo/semantics/openAccess
dc.subject.keyword Idiosyncratic income risken
dc.subject.keyword Incomplete marketsen
dc.subject.keyword Representative householden
dc.subject.keyword HANK modelsen
dc.subject.keyword TANK modelsen
dc.title Heterogeneity and aggregate consumption: an empirical assessment
dc.type info:eu-repo/semantics/workingPaper

Col·leccions